Informed Choice executive director Nick Bamford says FSA chairman Lord Turner does not understand the damage Financial Services Compensation Scheme levies are causing to IFA firms after Turner claimed they are “fully proportionate”.
At a press conference in London last week following the FSA’s annual public meeting, Turner said FSCS levies are “determined by metrics of revenue or assets, so those are already proportionate to the size of the firm”.
In a letter to FSCS chief executive Mark Neale, Bamford writes that although the FSCS seems to understand the impact the levies are having, the FSA does not.
Referring to Turner’s comments, Bamford says: “Such statements demonstrate a lack of understanding of the damage being caused to the IFA community by successive failures of both fund management firms and some poor behaviour from within the sub-group in which IFAs find themselves.”
In April, Informed Choice campaigned for a fairer way of funding the FSCS which received 1,421 signatures.
The FSA is expected to publish a review of the FSCS funding model later this year.